Insider Sellers Might Regret Selling Genovis AB (publ.) Shares at a Lower Price Than Current Market Value

Despite the fact that Genovis AB (publ.)'s (STO:GENO) value has dropped 10% in the last week insiders who sold kr27m worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of kr53.25 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Genovis AB (publ.)

The Last 12 Months Of Insider Transactions At Genovis AB (publ.)

The Director, Mikael Lonn, made the biggest insider sale in the last 12 months. That single transaction was for kr27m worth of shares at a price of kr53.25 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of kr46.20. So it may not tell us anything about how insiders feel about the current share price. Mikael Lonn was the only individual insider to sell over the last year.

Happily, we note that in the last year insiders paid kr627k for 10.44k shares. But they sold 500.00k shares for kr27m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Genovis AB (publ.)

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Genovis AB (publ.) insiders own 17% of the company, worth about kr500m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Genovis AB (publ.) Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Genovis AB (publ.), we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Genovis AB (publ.). You'd be interested to know, that we found 1 warning sign for Genovis AB (publ.) and we suggest you have a look.

Of course Genovis AB (publ.) may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.